IFCI tops sticky assets list; IDBI, ICICI follow

Rashmi Das

New Delhi, Sept 12: Industrial Finance Corporation of India (IFCI) tops the list of financial institutions with highest non-performing assets (NPAs) followed by Industrial Development Bank of India (IDBI) and Industrial Credit & Investment Corporation of India (ICICI).

A study by the Federation of Indian Chambers of Commerce and Industry (Ficci) reveals that IFCI’s NPAs stand at 21.5 per cent of its total assets while in the case of IDBI the figure is 12 per cent and ICICI, 7.8 per ,cent.

Ficci does not foresee any improvement in the NPA positions of these FIs in the near future.

The report also undertakes a sectoral analysis of the NPA position for ICICI and IDBI. Sectoral NPA figures for IFCI are not available.

Textiles and iron and steel sectors top the list of industries with highest NPAs for both the FIs. While textiles sector accounts for 22.3 per cent of the total NPAs for ICICI, it is 17.2 per cent in the case of IDBI.

Iron, steel and metal products sector contributes 16.5 per cent to the NPA position of ICICI and 17.1 per cent for IDBI. Sectors which have shown marginal NPAs for ICICI are sugar, fertilisers and pesticides and transport equipment. On the other hand, sectors which have booked marginal NPAs for IDBI are ceramics and refractories, the study notes.

The report attributes the high NPA position in the textile and iron and steel sectors to the effects of recession and government policy changes in the post-liberalisation phase.

Further, the report has drawn up an industry-wise classification of sectors in which the institutions did not have an exposure. While IDBI has no exposure in sugar, paper, chemicals, machinery, electrical equipment, fertilisers and pesticides.

ICICI has no exposure in drugs and pharmaceuticals, electrical machinery, ceramics and refractories.